MATTOON, Ill.--(BUSINESS WIRE)--Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the “Company” or “Consolidated”), a top 10 fiber provider in the U.S., today announced that, based on the preliminary vote count provided by its proxy solicitor following the Company’s special meeting of shareholders (the “Special Meeting”) held earlier today, Consolidated shareholders have voted overwhelmingly to approve the proposed acquisition of the Company by affiliates of Searchlight Capital Partners, L.P. (“Sea ...

MATTOON, Ill.--(BUSINESS WIRE)--Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) (the “Company” or “Consolidated”), has mailed a letter to its shareholders in connection with its upcoming special meeting of shareholders (the “Special Meeting”) urging shareholders to vote “FOR” the proposed acquisition of the Company by affiliates of Searchlight Capital Partners, L.P. (“Searchlight”) and British Columbia Investment Management Corporation (“BCI”) (the “Proposed Transaction”). The Special Meeting is s ...

Table of Contents Page Item 4. Controls and Procedures 47 Item 1A. Risk Factors 49 SIGNATURES 54 Table of Contents PART I. FINANCIAL INFORMATION Item 1. Financial Statements 1 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27 PART II. OTHER INFORMATION Item 5. Other Information 52 TABLE OF CONTENTS See accompanying notes CONSOLIDATED COMMUNICATIONS HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; Amounts in thousands except shar ...

Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q2 2023 Results Conference Call August 8, 2023 8:30 AM ET Company Participants Philip Kranz - Senior Director of Investor Relations Bob Udell - President and Chief Executive Officer Fred Graffam - Chief Financial Officer Conference Call Participants Michael Rollins - Citi Operator Good morning. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Consolidated Communications Second Quarte ...

Table of Contents Data and Transport Services We provide high-speed fiber data transmission services to regional and national interexchange and wireless carriers including Ethernet, cellular backhaul, dark fiber and colocation services. Data and transport services revenues decreased $5.1 million and $5.7 million during the three and six months ended June 30, 2023, respectively, compared to the same periods in 2022, of which $3.4 million and $3.6 million, respectively, is due to the sale of the Kansas City o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-51446 CONSOLIDATED COMMUNICATIONS HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 02-0636095 (State or other jurisdict ...

Start Time: 08:30 January 1, 0000 9:03 AM ET Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) Q1 2023 Earnings Conference Call May 02, 2023, 08:30 AM ET Company Participants Bob Udell - President and CEO Fred Graffam - EVP and CFO Philip Kranz - Senior Director, IR Conference Call Participants Gregory Williams - TD Cowen Michael Rollins - Citigroup Operator Ladies and gentlemen, good morning. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyon ...

Q1 2023 Nasdaq: CNSL consolidated.com May 2, 2023 Certain statements in this presentation, including those relating to the current expectations, plans, strategies, and anticipated financial results, including year over year revenue and EBITDA growth in 2024, are forwardlooking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, our current expectations, plans, strategies and anti ...

Financial Performance - The company reported total operating revenues of $1,191.3 million for 2022, a decrease from $1,282.2 million in 2021, with broadband services contributing $272.1 million, or 22.8% of total revenues[32]. - The company’s voice services generated $144.8 million in revenue, accounting for 12.2% of total revenues, down from $160.7 million in 2021[32]. - The company reported income from wireless partnerships of $23.5 million, $41.8 million, and $40.7 million for the years ended December 31, 2022, 2021, and 2020, respectively[57]. - Revenue from contracts with customers for the year ended December 31, 2022, was $119,675,000, a decrease from $133,362,000 in 2021, representing a decline of approximately 10.3%[184]. - Contract assets increased to $25,322,000 in 2022 from $23,893,000 in 2021, reflecting a growth of about 5.9%[184]. - Contract liabilities decreased from $60,503,000 in 2021 to $54,537,000 in 2022, indicating a reduction of approximately 9.8%[184]. Network Expansion and Upgrades - The company has upgraded approximately 403,000 homes and small businesses to fiber-to-the-home/premise (FTTP) in 2022, following 330,000 upgrades in 2021, with a target of at least 225,000 upgrades in 2023[40]. - The company launched its largest-ever fiber infrastructure project in 2021, aiming to upgrade around 1.6 million premises over six years to enable multi-Gig symmetrical speeds[40]. - Company plans to upgrade approximately 1.6 million passings to fiber by 2026, with 403,000 and 330,000 passings upgraded in 2022 and 2021 respectively[110]. - The upgraded network is expected to provide up to 10 Gbps symmetrical broadband, enhancing average revenue per user (ARPU) and customer retention[110]. - The fiber-optic network consisted of over 57,800 route-miles as of December 31, 2022, including approximately 17,000 miles of FTTP deployments[85]. Customer Base and Market Position - As of December 31, 2022, the company had 484,669 consumer customers, a decrease from 516,949 in 2021 and 554,763 in 2020, indicating a trend in customer attrition[43]. - The company aims to transition its customer base from legacy TDM-based products to fiber and IP-based data and transport services, focusing on high revenue visibility projects[63]. - The company plans to expand its Fidium Fiber brand further into its footprint and to small business customers, enhancing its competitive position in the market[40]. - The company continues to face significant competition from various providers, including cable, wireless, and fiber data providers[113]. Strategic Partnerships and Investments - The company’s partnership with Searchlight aims to pursue targeted investments and growth opportunities in broadband and fiber infrastructure[30]. - Searchlight committed to invest up to $425 million in the Company, with $350 million already invested for approximately 8% of common stock[190]. - The Note issued to Searchlight bore interest at 9.0% per annum, with a term of 10 years, maturing on October 1, 2029[191]. Regulatory and Funding Initiatives - The Rural Digital Opportunity Fund (RDOF) is a $20.4 billion initiative aimed at providing broadband speeds of 25 Mbps downstream and 3 Mbps upstream to underserved areas in the U.S.[123]. - Consolidated won bids for 246 census block groups across seven states during the RDOF auction, which took place from October 29 to November 24, 2020[123]. - Consolidated began receiving RDOF funding in January 2022, following the approval of its application on December 14, 2021[125]. - Annual support from FCC's CAF Phase II funding was $48.1 million through 2021, with obligations to serve approximately 124,500 locations[105]. Operational Changes and Challenges - The company completed the sale of its Ohio operations and Kansas City operations, generating operating revenues of $8.9 million and $51.3 million for the year ended December 31, 2021, which accounted for 0.7% and 4.0% of consolidated operating revenues respectively[5]. - The company completed the sale of its limited partnership interests for an aggregate purchase price of $490.0 million, classified as discontinued operations in its financial statements[31]. - The company completed the sale of its wireless partnerships for an aggregate purchase price of $490 million on September 13, 2022, intending to use the proceeds to support fiber expansion plans[82]. - The company reported a significant reduction in consumer data connections due to the sale of its operations, with approximately 3,325 fiber and 14,505 DSL/Copper connections lost in 2022[5]. - The company anticipates continued erosion in voice connections due to competition from alternative technologies, including its own VoIP product[133]. Employee and Workplace Initiatives - Approximately 49% of employees were covered by collective bargaining agreements as of December 31, 2022[115]. - Company aims to create a diverse and inclusive workplace, offering training on discrimination and harassment prevention[97]. - Company is committed to enhancing customer experience through digital transformation projects and improved customer service capabilities[90]. Financial Health and Asset Management - As of December 31, 2022, the carrying value of goodwill was $929.6 million, a decrease of $83.6 million from the previous year due to a divestiture[166]. - The total plant in service was valued at $4,756.7 million as of December 31, 2022, with accumulated depreciation of $2,754.6 million[161]. - The Company did not recognize any goodwill impairment in 2022, 2021, or 2020, indicating stable asset valuations[198]. - The total assets of the Company amounted to $26,048,000, with current assets at $137,000 and property, plant, and equipment at $9,584,000[194]. - The Company utilizes derivative financial instruments to manage interest rate risks, converting a portion of floating-rate debt to fixed-rate[201]. - Cash flows from hedging activities are classified under the same category as the cash flows from the hedged items in the consolidated statement of cash flows[202].

Financial Data and Key Metrics Changes - Total operating revenue for Q4 was $296 million, with adjusted EBITDA at $101.7 million, and normalized revenues declined by $15.8 million or 5.2% year-over-year [45][46] - Reported adjusted EBITDA for 2022 was approximately $414 million, with guidance for 2023 adjusted EBITDA expected to be in the range of $310 million to $330 million [52][53] - The company experienced a decline in voice and video services revenue, with normalized consumer voice revenue down 11.8% and video revenue down 17% year-over-year [69][70] Business Line Data and Key Metrics Changes - Consumer broadband revenue normalized was $67.9 million, up 5.3%, driven by strong consumer fiber revenue growth of 51% [68] - Fiber broadband revenue normalized for Kansas was $23.7 million, reflecting a 51% year-over-year increase [39] - Commercial revenue normalized was $97.7 million, down 2.1%, while data services revenue normalized was $53.7 million, up 1.3% year-over-year [70] Market Data and Key Metrics Changes - Fiber now constitutes one-third of consumer broadband connections, up from 22% a year ago, indicating a significant shift from copper to fiber [41] - The company targets to grow fiber customer base to over 500,000 by 2026, representing 25% penetration on targeted fiber passings of 2 million [42] - Fiber ARPU exceeds copper by over $13 or 25%, indicating a healthy revenue spread [41] Company Strategy and Development Direction - The company is committed to increasing fiber penetration across consumer, commercial, and carrier channels, with a target of reaching over 70% fiber coverage by mid-2026 [14][60] - The addition of new leadership is aimed at enhancing the go-to-market strategy and driving fiber penetration [25][26][27] - The company plans to leverage public-private partnerships to support its fiber expansion and offset costs [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant shareholder value through increased fiber market penetration and revenue growth [25] - The company anticipates an inflection point in 2024 for year-over-year revenue and EBITDA growth, targeting a compound annual growth rate in the mid-teens for EBITDA [60] - Management acknowledged challenges in predicting sequential revenue growth due to carrier contract renegotiations but remains optimistic about future growth [11][22] Other Important Information - The company has been awarded approximately $150 million in broadband partnership and grant funding since 2019 to support its expansion projects [34] - The average cost per passing for fiber build is estimated to be approximately $650 in 2023, significantly below peer group averages [48] - The company maintains liquidity with cash and short-term investments of approximately $414 million and $225 million of available borrowing capacity [51] Q&A Session Summary Question: What is the subscriber cadence and how to get back to positive net adds? - Management noted a slight decline in subscribers due to weather impacts but is confident in achieving significantly positive net adds in 2023 [84][85] Question: Can you elaborate on the EBITDA guidance for 2023? - The reduction in EBITDA guidance is primarily due to $50 million from asset sales, $20 million from legacy phone revenue, and $10 million from carrier business pressures [87][88] Question: How is the CapEx structured for 2023? - CapEx is expected to be approximately 70% related to the fiber business and 30% related to the carrier and commercial business [90]